New EU credit rating rules voted in

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New rules targeting credit rating agencies and the process of rating state debts and private firms' financial health were approved by Parliament this week. The updated rules will only allow unsolicited sovereign debt ratings on set dates and enable private investors to sue them for negligence. Furthermore, new ratings can be published only after markets in the EU have closed and at least one hour before they reopen. MEP Leonardo Domenici was quoted as saying: “We are taking some steps forward with this new regulation, fully in line with its basic spirit, which is to enable firms to do their own internal ratings.” The changes have been introduced to reduce the over-reliance on ratings agencies. January 18, 2013
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